Friday 16 September 2016

Centre clears way for loan of Rs 6,325 crore: Pune metro

The loan will be directly taken by the Special Purpose Vehicle for Pune metro with sovereign guarantee being provided by the union government.

The much-delayed Pune metro rail project is all set to get a loan of Rs 6,325.50 crore from World Bank (WB) and China-based Asian Infrastructure Investments Bank (AIIB), with the union government approving the state government proposal for multilateral assistance for the project.

In a communication, the department of economic affairs of the union finance ministry conveyed to the state government that the screening committee had approved its proposal for multilateral assistance of Rs 6,325.50 crore for the first phase of Pune metro rail project on certain conditions.

As per the conditions, the loan will be directly taken by the Special Purpose Vehicle (SPV) for Pune metro with sovereign guarantee being provided by the union government. The loan would be co-financed by Word Bank and AIIB, which would be split in two-three smaller tranches.

The union government would contribute Rs 2,118 crore, the state government Rs 2,430.40 crore while PMC and PMC would together contribute Rs 1,278.40 crore.

“The process for completing the formalities for the loan would be completed in next few months. It also includes final approval of the union government,” Kumar said, adding the work on the project would be started immediately after the union government’s approval as the loan funds would be available.
Source: TheindianExpress

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